Geopolitical challenges over the past few years and in the foreseeable future has thrown a wrench in the works for many supply chains. Procurement managers have been cracking their head solving the complex issues surrounding the uncertainties. Many have started looking to procure or source for a contract manufacturer outside of China, for example, but still face significant challenges sourcing outside of China.
While diversifying the supply chain can bring benefits such as cost savings, access to new markets, and risk mitigation, there are also specific challenges associated with this strategy.
Some of the key challenges include:
- Logistical Challenges: Traditional routes may not be familiar leading to increased lead times, including shipping times.
- Quality Assurance: Typical support system not available and manufacturing standards and practices may be different. Capabilities may be different or simply, drawings were not updated or even worse, not provided by existing supplier or internal engineering teams.
- Regulatory Compliance: Different countries have diverse regulatory environments, and procurement managers need to navigate various compliance requirements related to product specifications, safety standards, labeling, and documentation.
- Communication and Language Barriers: Effective communication with suppliers may be hindered by language barriers, leading to misunderstandings or delays in the procurement process.
- Supplier Relationship Management: Developing strong relationships with new suppliers may require additional effort and understanding of cultural differences.
To address these challenges, procurement managers often implement strategies such as thorough risk assessments, diversification of suppliers, investing in technology for supply chain visibility, and staying informed about global market dynamics and regulations. However this may still not be enough as the constant change in global dynamics is too unprecedentedly quick.
Engaging with a reliable partner is crucial, and we have brought together our years of experience to be the “boots on the ground”, helping customers with many supply chain issues in multiple commodities.
Contact us today to discuss more.
English (UK) 
简体中文 
Deutsch 
Nederlands